Israeli Firm in Talks to Buy Stake in Zambia's State Mining Investor, Source Says

Sapir Capital is reportedly in talks over stake worth more than $100 million in state owned mining investment arm Zambia Consolidated Copper Mines Investment Holdings

File photo: A mine worker displays a handful of cobalt metal nuggets at the Nchanga copper mine, Zambia, 2016.
Bloomberg/ Waldo Swiegers

Zambia, Africa's second-largest copper producer, is talking to an Israeli company that wants to buy a stake in state mining investment arm Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), a source told Reuters on Tuesday.

Israel's Sapir Capital had expressed interest in buying a stake worth more than $100 million in ZCCM-IH, the source close to the negotiations said.

"It's in the pipeline, but I can't comment on whether it will happen or not," the source added.

Officials at Sapir Capital could not be reached.

The Zambian firm has diversified interests in mining, energy and other sectors of the southern African nation's economy. The state-owned Industrial Development Corporation Ltd (IDC), an investment company wholly owned by the government, is the majority shareholder in ZCCM-IH.

About 800 Zambians bought shares in ZCCM-IH during a 2015 sale of shares in the company, the source said.

The company, which holds a minority state in foreign mining firms in Zambia, has more than 4,000 shareholders and its market capitalisation is over $657 million, according to information on its website.